NEM Community Fund Update | Concluding the DAO

[leoinker]

Dear Community,

I am posting this on behalf of the NEM Community Fund Committee.

The following letter is being sent to all community funded projects. They will also receive a secondary letter with more confidential details specific to their project.

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The NEM Community Fund DAO (NCF) was established from unclaimed stakes, with purpose of expanding the NEM ecosystem, and benefiting NEM adopters / stakeholders.

From a total of 300 million XEM, 30 million XEM has been allocated across a total of 12 projects. Five of these have completed their funding allocations, and are no longer receiving funds from the NCF.

The majority of remaining projects are now more than a year old and at varying stages of progress.

However; due to low crypto prices, and the application of the NCF algorithm, most projects have already exceeded, or are close to exceeding the originally requested XEM amounts.

At today’s price of $0.05 USD, the requested fiat values of NCF projects equates to over 85 million XEM. With market price trends, these volumes are susceptible to rapid inflation as ever increasing volumes of XEM are issued to offset the low fiat value.

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This has been a good prompt to pause and consider if, and how, NCF best serves the remaining projects.

After careful assessment of the facts, we have concluded with the following:

Instead of draining the limited XEM reserves, we aim to conclude NCF processes at a cost of no greater than 5 million XEM. This 5 million XEM will be issued in a manner as effectively as possible to assist current projects in transitioning from NCF to external funding sources.

NEM Ventures is now operational with better processes and support than NCF can provide, and thus a preferable vehicle for NEM project support.

The existing NCF committee is now reviewing the remaining projects to ensure they are viable businesses aligned with the NEM vision.

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The NCF Committee issues the following recommendations:

1. Any remaining projects that have not proven they are a solid NEM fit, or where there are serious concerns about their viability to make it to market, will not receive any further NCF funding.

2. Any project that has progressed to a point where it is now viable and ready for external investment will be asked to cease, or heavily reduce, any further NCF funding, particularly if what they have already received is above the original XEM budget.

3. We will work with remaining projects to establish what further funding is genuinely required over the next 3 months as we assist them in transition to other funding sources.

We intend to wrap up the NCF processes and abolish committee by June 30th, 2019.

[leoinker]

Japanese translation:

コミュニティ各位

私はこれをNEM Community Fund Committeeに代わって投稿しています。

次の手紙は、コミュニティが資金提供するすべてのプロジェクトに送られています。彼らはまた彼らのプロジェクトに固有のより機密の詳細を含む二次的な手紙を受け取るでしょう。

NEMコミュニティ基金DAO（NCF）は、NEMエコシステムを拡大し、NEM採用者/利害関係者に利益をもたらすことを目的として、要求されていないステークスから設立されました。

合計3億XEMから、合計12のプロジェクトにわたって3,000万XEMが割り当てられています。これらのうちの5つは彼らの資金配分を完了し、そしてもはやNCFから資金を受け取っていません。

残りのプロジェクトの大部分は1年以上前のもので、さまざまな段階で進行中です。

しかしながら;暗号価格が低く、NCFアルゴリズムが適用されているため、ほとんどのプロジェクトはすでに要求されているXEMの量をすでに超えているか、または超えようとしています。

今日の0.05ドルの価格で、NCFプロジェクトの要求されたフィアット値は8500万XEMに相当します。市場価格の動向に伴い、これらの取引高は急激なインフレの影響を受けやすく、低フィート価値を相殺するためにXEMの取引高が増加し続けています。

これは、NCFが残りのプロジェクトを最も効果的に処理するかどうか、またその方法を検討するための一時停止および検討を促すための良いプロンプトでした。

事実を慎重に評価した後、我々は以下の結論を出した。

限られたXEMの埋蔵量を排出する代わりに、我々は500万XEM以下のコストでNCFプロセスを終結させることを目指しています。この500万のXEMは、現在のプロジェクトがNCFから外部の資金源に移行するのを支援するために可能な限り効果的な方法で発行されます。

NEM Venturesは現在、NCFが提供できるよりも優れたプロセスとサポートで運用されているため、NEMプロジェクトのサポートには好ましい手段です。

既存のNCF委員会は現在、残りのプロジェクトを検討して、それらがNEMのビジョンに沿った実行可能な事業であることを確認しています。

NCF委員会は以下の勧告を発行します。

NEMにしっかりと適合していることを証明していない、または市場に投入する可能性について深刻な懸念がある場合、残りのプロジェクトにはこれ以上NCFの資金は提供されません。

実行可能になり、対外投資の準備が整うまで進行したプロジェクトは、特にすでに受け取ったものが元のXEM予算を超えている場合は、それ以上のNCF資金を停止するか大幅に削減するよう求められます。

他の資金源への移行を支援するため、残りのプロジェクトと協力して、今後3か月間にどのような資金がさらに必要となるかを確立します。

2019年6月30日までに、NCFのプロセスをまとめ、委員会を廃止する予定です。

[Dan_V]

Deeply disappointing. This is actually a betrayal for those of us who have sunk significant time and resources into building on NEM. Couple this with the handling of these Milestone payouts and the basic fact that NEM seems to have not realised the volatility in the crypto market when that “algorithm” was invented meant that a drop in the prices would have caused them to have to pay out more?

[GodTanu]

DAN, I don’t criticize you.
But, looking at this now, I think…

DEVELOPMENT PHASES

Current
Digital2Go has a fully operational customer portal with analytics and dashboarding for our current deployments, the system has been under constant development for 2+ years, the next stage of development is to build on our offerings to allow for ownership of personal location data and integrate the entire system with the NEM blockchain.

Phase 1 - 3 months ←
Development of the SDK to stream data to IoT endpoints and record transactions on the blockchain, Android and iOS - SDKs are to be open sourced and made publicly available.

Phase 2 - 3 months ←
Development of the LocationCore app that integrates this SDK. This app will be the primary offering while partnerships are built. It will be available in app stores where users can download and start earning immediately after release.

…

MILESTONES

Seeding (300K XEM)

• Recruitment of developers for LocationCore project
  Full time, 6 Months (2 x Top Mobile, 1 x React Native, 1 x Senior Dev w/ Blockchain Experience)
• LocationCore App Mockup Completed for launch on community
• Press release written for Blockchain launch

Milestone 1 (200K XEM)

• Website created for LocationCore describing functionality and benefits
• Completed development of the iOS SDK
• Integration of SDK with NEM Public Blockchain
• Create a marketing and PR plan to launch the world’s first personal location data democratisation solution on the NEM blockchain

Milestone 2 (250K XEM)

• Completed development of the Android SDK
• Integration of SDK with NEM Public Blockchain
• Create streaming data infrastructure (Kafka / AWS Kinesis) and link to IoT platform
• Create blockchain integration at point of data creation to accurately record location packets sent by devices
• Create pipeline for ingestion of data to Digital2Go analytics platform Create pipeline for ingestion of data to Digital2Go analytics platform (AWS Redshift, Matillion ETL and ML Scripts to cleanse and enrich extra data incoming from LocationCore SDK’s)

This is the January 2018 description.
Now it is 2019. It will be Q2 soon.
Payment has been made twice. A total of 500,000 XEM.
The milestone is “1”.

[Dan_V]

Thanks @GodTanu - Can you move this to our thread? LocationCore: Democratising personal user location data through the NEM blockchain

Will sort out a response tomorrow as I have only just seen this and its late here!

[Dan_V]

LocationCore: Democratising personal user location data through the NEM blockchain

An update from us: @GodTanu raised some questions in the DAO thread where I expressed my dissatisfaction with the NCF, so I wanted to take this opportunity to provide an update with LocationCore now the NCF has been concluded. Like many projects here the NCF provided us a way to kickstart development of our systems on NEM, it was something we were glad to be a part of and in our case especially helped ‘grease the wheels’ for other executives to get on board with using NEM as a platform over o…

Please see response here!

[LauraBKK]

As the NCF platform has basically been moved over to NEM Ventures, I see this as a logical move with more oversight, more governance, and makes the ecosystem sustainable.
Of course it could stir up some negative reactions from projects, but I think with the climate we are in it’s the move that makes most sense.

[leoinker]

To add some clarity: NCF is and was completely independent from any other NEM entities, including NEM Ventures. There was no outside influence on our decisions.

However, given the current status of NCF and the fact that NEM Ventures does exist, the most logical path forward is to refer projects to them.

Since we respect the privacy and confidential details of each project, it is near impossible to respond to any public complaints without breaching that trust.
Therefor, we will continue to refrain from doing so.

Thanks for the support!

[LauraBKK]

Yes this as well. Foundation, NCF, and Ventures are all separate entities. Thanks for clarification and for your commitment to keeping confidentiality.

[gramkn]

I don’t recall any discussion about this proposal at all. Did the NCF committee make this decision based on their own internal discussions without input from the community? Frankly, this is a really bad look for NEM, as it appears the approved projects are basically being told they are shit out of luck, with no warning, and not even an attempt to help them in anyway carry on with the endeavor they wouldn’t have started without the support of the community fund.